When Apple sued HTC, and targeted Android specifically (news which came out of the blue), many people, including myself, were convinced this was Apple letting the world know they were afraid of Android's rising popularity. This notion was laughed away by many an Apple fan, but it turns out that this is most likely far closer to reality than many dare to admit: in the first quarter of 2010, Android conquered the number two market share spot from the iPhone in the US - and by a wide margin too. Update: Added a graph which better shows the trend.

I don't think Android out sold iPhone on its own merit. It is Not a superior product. Apple made the mistake when it decided to go with AT&T. It partnered with the wrong cell phone company. So don't get to perky Google. When iPhone is released to other carriers Apple will be on top again.